Plugging into Savings: A New Incentive-Based Market Can Address Ontario’s Power-Surplus Problem

Benjamin Dachis () and Donald Dewees

No 120, e-briefs from C.D. Howe Institute

Abstract: After years of looming power shortages, Ontario faces instead a periodic problem of excess electricity supply at the same time that new generation capacity is being added. Since Ontario government agencies that purchase power have long-term, fixed-price contracts with many electricity generators, Ontario consumers pay for electricity produced by some generators even when that electricity has little value, particularly during periods of high wind production and low demand.For the long term, the province should create financial incentives for constructing flexible generation capacity.

Keywords: Economic Growth and Innovation; Ontario; Canada; power supply (search for similar items in EconPapers)
JEL-codes: K10 K20 L11 L94 (search for similar items in EconPapers)
Pages: 7 pages
Date: 2011-07
New Economics Papers: this item is included in nep-ene
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published on the C.D. Howe Institute website, July 2011

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Persistent link: https://EconPapers.repec.org/RePEc:cdh:ebrief:120

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